Finalisation of Bull recapitalisation process
Paris,
January
19, 2005 -
As approved by the European Commission on December 1st, 2004, the French State paid to Bull, on January 14th, 2005 a restructuring aid amounting to € 517 million. This aid is combined to a profit sharing agreement under the terms of which Bull will pay the French State 23.5% of the current consolidated profit before tax over € 10 million for a 8 year period .
The payment of this aid was subject to Bull's prior reimbursement of a shareholder advance of the same amount (capital & interests) which had been granted by the French State in 2001 and 2002, and converted in March 2004 into a subordinated loan. This reimbursement took place on January 11th, 2005, thanks to a financing facility provided by Calyon and redeemed to Calyon on January 14th.
In addition 97.7% of the warrants issued upon from the public exchange offer were exercised between July 16th and December 15th, 2004, which generated more than € 17 million.
The last and fundamental steps of Bull's recapitalisation process are thus finalised.
After the successful market operations carried out in June 2004 (capital increase and OCEANE bonds public exchange offer), Bull has definitely restored its financial structure and its net equity.
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